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How to Write a Business Plan by Michael P. Griffen

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10

Developing a Financial Plan

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Learning Objectives

By the end of this chapter, you should be able to:

Explain how the company’s financial goals and strategies link to and provide the structure for the financial plan.

Define income statement and list its components.

Define balance sheet and describe the three planning functions necessary to complete it.

Define statement of cash flows and describe its purpose.

Explain how preparing a statistical summary of the company’s planned performance and creating individual operating budgets are necessary to finalize the financial plan.

The major components of the company’s operating plan—the ...

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